J Alexanders (NYSE:JAX) and Darden Restaurants (NYSE:DRI) are both retail/wholesale companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, risk, valuation, dividends, analyst recommendations, profitability and earnings.
Institutional and Insider Ownership
74.9% of J Alexanders shares are held by institutional investors. Comparatively, 90.5% of Darden Restaurants shares are held by institutional investors. 15.0% of J Alexanders shares are held by company insiders. Comparatively, 0.7% of Darden Restaurants shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Darden Restaurants pays an annual dividend of $1.26 per share and has a dividend yield of 1.2%. J Alexanders does not pay a dividend. Darden Restaurants pays out 26.2% of its earnings in the form of a dividend.
Earnings and Valuation
This table compares J Alexanders and Darden Restaurants’ revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|J Alexanders||$233.26 million||0.56||$7.33 million||$0.53||16.64|
|Darden Restaurants||$8.08 billion||1.68||$596.00 million||$4.81||22.74|
Darden Restaurants has higher revenue and earnings than J Alexanders. J Alexanders is trading at a lower price-to-earnings ratio than Darden Restaurants, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
J Alexanders has a beta of 0.27, suggesting that its share price is 73% less volatile than the S&P 500. Comparatively, Darden Restaurants has a beta of 0.17, suggesting that its share price is 83% less volatile than the S&P 500.
This is a summary of recent ratings and price targets for J Alexanders and Darden Restaurants, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Darden Restaurants has a consensus target price of $119.71, suggesting a potential upside of 9.44%. Given Darden Restaurants’ higher possible upside, analysts plainly believe Darden Restaurants is more favorable than J Alexanders.
This table compares J Alexanders and Darden Restaurants’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Darden Restaurants beats J Alexanders on 12 of the 15 factors compared between the two stocks.
About J Alexanders
J. Alexander's Holdings, Inc., through its subsidiaries, owns and operates full service restaurants in the United States. It operates four complementary upscale dining restaurant concepts, including J. Alexander's, Redlands Grill, Lyndhurst Grill, and Stoney River Steakhouse and Grill (Stoney River). The company's restaurants offer American menu. As of September 19, 2018, it operated 45 restaurants in 16 states. J. Alexander's Holdings, Inc. was founded in 1970 and is headquartered in Nashville, Tennessee.
About Darden Restaurants
Darden Restaurants, Inc., through its subsidiaries, owns and operates full-service restaurants in the United States and Canada. As of May 27, 2018, it owned and operated approximately 1,746 restaurants under the Olive Garden, LongHorn Steakhouse, Cheddar's Scratch Kitchen, Yard House, The Capital Grille, Bahama Breeze, Seasons 52, and Eddie V's brands. The company was founded in 1968 and is based in Orlando, Florida.
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